Agency is a relationship based on an agreement authorizing one person, the agent, to act for another, the principal. For example an agent may negotiate and make contracts with third persons on behalf of the principal. If an agent tries to do an act for his principal that he is not specifically authorized to do, the principal has the choice of ignoring the transaction or ratifying it. Generally, even an unauthorized act may be ratified.
Puerto Rico Ratification by Principal of Agent's Execution of Contract refers to a legal process in which a principal acknowledges and confirms the actions taken by their agent in executing a contract on their behalf. It is a significant step to validate and affirm the agent's authority to act on behalf of the principal, ensuring the contract's enforceability. This process holds great importance in Puerto Rico's legal system and is governed by specific guidelines and regulations. The ratification by a principal serves as a declaration or approval of an agent's actions, making them legally binding on the principal. It can occur in various situations, such as when an agent exceeds their authority, fails to obtain prior authorization, or acts without any authority initially. Through ratification, the principal adopts the agent's actions, treating them as if they were initially authorized. In Puerto Rico, there are different types of ratification by the principal of an agent's execution of a contract, including express ratification and implied ratification. 1. Express Ratification: This type of ratification occurs when the principal explicitly and formally approves the agent's actions after they have already been taken. It involves the principal providing a clear and unambiguous statement acknowledging the contract's validity and accepting its consequences. Express ratification can be in writing or verbally communicated. 2. Implied Ratification: Unlike express ratification, implied ratification is indirect and can be inferred from the principal's conduct or behavior. It happens when the principal, with knowledge of the agent's actions, accepts the benefits derived from the contract or engages in acts consistent with treating the contract as valid. Implied ratification may be implied from the principal's failure to repudiate the contract promptly. Puerto Rico's legal system strictly governs the ratification process to protect the rights of both principals and agents. It ensures that the principal cannot selectively ratify certain actions and obtain benefits while disavowing others. The ratification effectively binds the principal to honor and fulfill the obligations stipulated in the contract. Overall, Puerto Rico Ratification by Principal of Agent's Execution of Contract is a crucial legal process that validates an agent's actions on behalf of a principal. Whether through express or implied ratification, it allows for the enforceability of contracts and ensures the smooth functioning of business relationships in Puerto Rico's legal landscape.
